AUD/USD sits near multi-week top, just below mid-0.7100s amid broad-based USD weakness By HareshMenghani AUDUSD Fed RiskAppetite RBA Currencies
A combination of supporting factors assisted the AUD/USD pair to gain strong positive traction on Friday and breakout through a multi-day-old trading range. The Australian dollar continued drawing support from the Reserve Bank of Australia's hawkish signal that a bigger interest rate hike is still possible in June amid the upside risks to inflation.
Meanwhile, the intraday move up pushed spot prices beyond the 0.7125 supply zone and might have already set the stage for additional gains. Hence, a subsequent strength, towards reclaiming the 0.7200 round-figure mark, now looks like a distinct possibility. The momentum could further get extended to the 100-day SMA, around the 0.7230-0.7235 region. Traders now look to the US Core PCE
- the Fed's preferred inflation gauge - for a fresh impetus later during the early North American session.